Is NASDAQ:SNPS suited for quality investing?

In this article we will dive into SYNOPSYS INC (NASDAQ:SNPS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SYNOPSYS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NASDAQ:SNPS may be interesting for quality investors.

• Over the past 5 years, SYNOPSYS INC has experienced impressive revenue growth, with 13.36% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of SYNOPSYS INC stands at 92.03%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• SYNOPSYS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.01, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• SYNOPSYS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 113.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• The 5-year EBIT growth of SYNOPSYS INC has been remarkable, with 29.26% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• SYNOPSYS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NASDAQ:SNPS?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

SNPS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. SNPS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SNPS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make SNPS suitable for growth and quality investing!

For an up to date full fundamental analysis you can check the fundamental report of SNPS

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.